A new partnership will see $ 1 billion invested in reforestation at multiple sites across Latin America, the region’s largest investment bank, BTG Pactual, announced today.
The bank’s specialist subsidiary, Timberland Investment Group (TIG), has partnered with environmental non-profit organization Conservation International for a new impact-driven reforestation investment strategy.
Conservation International said he would serve as TIG’s impact advisor on the strategy, which aims to invest $ 1 billion over five years to protect and restore hundreds of thousands of acres of forests and landscapes in America. Latin.
TIG said the investment strategy, which also includes planting millions of trees and supporting community development, aims to deliver climate, environmental and social benefits in addition to financial returns.
“Restoration and reforestation offers one of the greatest opportunities for climate change mitigation at the landscape level, along with a host of other benefits for people and the planet,” said Garrity Lansing, Head of TIG . “Latin America, in particular, offers enormous potential for these large-scale activities due to ideal growth conditions, technical capacity and market depth. We believe this initiative is another major example of how the forest sector can generate financial returns for investors through the significant climate, conservation and community impact of restoration and conservation activities. ”
The investment group plans to acquire deforested land in Latin America, initially targeting Brazil, Uruguay and Chile, for protection, restoration and reforestation. TIG has confirmed that half of the land will be restored and protected, while the other half will be developed into sustainably managed forest farms. TIG will seek certification of the Forest Stewardship Council (FSC) sustainability standard for all of its acquired properties.
Echoing Mr. Lansing’s comments, Jack Hurd, Executive Vice President of Global Programs at Conservation International, said: “Protecting nature is essential to protecting our climate future. Initiatives like this help chart a new course towards a sustainable economy that does just that, while providing a host of additional benefits to local communities. We look forward to working with TIG. “
TIG also announced its intention to invest in processing facilities for the production of climate-positive forest products, such as carbon sequestering timber.
The announcement follows a report released earlier this month by the Network for Greening the Financial System which warned that biodiversity loss poses a growing risk to financial institutions and suggests that financial firms create tools to better assess biodiversity risks.